The Victorian Government announced on Sunday its decision to introduce a COVID-19 event cancellation insurance scheme.
The 12-month insurance scheme will cover up to $230 million for events that are cancelled or have their capacity reduced due to State of Federal Government-imposed COVID-19 restrictions.
Delivered by the Victorian Managed Insurance Authority (VMIA), the COVID-19 Event Insurance will provide 100 percent cover of the declared value of business, community, creative, and sporting events with estimated revenue or cost of between $20,000 and $10 million.
The insurance will be available in December and must be purchased at least two weeks before the first day of events without any restrictions already in place.
Advocacy group Save Victorian Events has actively campaigned for this issue since August 2020 and has welcomed the decision.
An insurance scheme of this kind is a first for Australia and Save Victorian Events spokesperson Simon Thewlis said it will give Victoria’s events industry the confidence it needs.
“We know we will be living with the risks of Covid for years to come and that commercial insurers are very unlikely to cover Covid risks for the time being, so government backed insurance will be the only insurance available for the foreseeable future,” Thewlis said.
Finer details, including costs, are expected to be released in December, but Thewlis is hopeful this development will see other states follow suit.
“Obviously, we are a national industry and most of us work right across Australia, so hopefully this will cause other states to also put in place similar schemes for events in their states, or, better yet, for the Federal government to coordinate a national scheme for the long term.”